Sep 08 Trading Analysis: Be Long in the face of adversity...
Over the weekend, ETH was literally getting taken to the slaughterhouse, down almost $100 at one point. DeFi tokens also getting smoked (no surprise, what goes up must come down eventually). On the other hand, BTC was holding up relatively well, trading above the $10K level. With the current weakness, puts were the flavour of the week, resulting in implied volatility spiking; ETH > 100% and BTC close to 70% for 1-month. I'm actually thinking that it could be a great opportunity to start accumulating BTC or ETH at these levels. Check these out:
Sell 4-day 9.5K puts for 35% annualized
Sell 4-day 9.75K puts for 70% annualized
Sell 4-day $280 puts for 20% annualized
Sell 4-day $300 puts for 35% annualized
In macro land, we got U.S. CPI report, ECB rate decision, Brexit, UK GDP and China trade data this week. Quite a busy week but all eyes will still be on the tech sector. Though US equities rebounded somewhat on Friday after the sharp tech-led sell off, global indices still finished in the red for the second day. Narratives vary regarding what triggered the sell off, and there's no clear catalyst but suspected culprits continue to come from the algo, option/gamma (Softbank loading up billions of calls) or profit-taking camps.